Aboitiz-owned Davao Light and Power Co. Inc. is preparing to invest at least PHP 1 billion to acquire the electricity distribution assets of the Northern Davao Electric Cooperative Inc. (NORDECO) in Davao del Norte and Davao de Oro.

Over the next five years, Davao Light plans to upgrade and rehabilitate the infrastructure it acquires from NORDECO to meet its service standards. The company currently serves over 500,000 customers, ranking as the third-largest private utility in the Philippines after Manila Electric Co. (Meralco) and Visayan Electric Co.—which is also under the AboitizPower group.

The planned acquisition follows Republic Act 12144, which lapsed into law on April 6, and was reported on by Philstar. The measure expanded Davao Light’s franchise to cover Tagum City, Samal Island, and several surrounding areas in Davao del Norte and Davao de Oro—territories previously served by NORDECO.

Under the law, NORDECO is allowed to continue operating for up to two years to ensure uninterrupted power supply during the transition period. However, Davao Light president and COO Enriczar Tia said progress has been slowed by the cooperative’s resistance to the franchise handover.

“NORDECO has been resistive and even pursued legal actions to challenge the constitutionality of the franchise expansion,” Tia said, noting that the company has yet to begin full operations in the newly covered areas.

Tia emphasized that Davao Light’s entry would bring tangible benefits to consumers, starting with lower electricity rates.

“One thing I can say is that several things will happen once we take over. First, since this is a Davao Light franchise expansion, they (consumers) will automatically benefit from lower (power) rates,” he said.

As of July 2025, Davao Light charged an average of PHP 9.20 per kilowatt-hour (kWh)—much lower than NORDECO’s PHP 12 to PHP 13/kWh.

Beyond reduced rates, Tia also pointed to service reliability and faster response as areas where Davao Light intends to make a difference.

“In Davao Light, in one year, imagine you’ll just experience an average of three (power) interruptions, although I cannot guarantee that it will happen overnight because to do that, you need to have a reliable power system,” he said.

The company has already extended an initial offer to NORDECO for its assets in Davao del Norte and Davao de Oro, though Tia noted that negotiations are still ongoing. “Right now, we still need to get all the data of their assets,” he said.

Once completed, the takeover is expected to mark a major shift in Mindanao’s power distribution landscape, expanding Davao Light’s footprint and introducing AboitizPower’s customer-service model to new areas.

How do you think Davao Light’s expansion will reshape the power landscape in Mindanao?

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